FSA steps up M&S shares probe

STOCKBROKER Brewin Dolphin has been asked by the Financial Services Authority to provide details of all client trades in Marks & Spencer shares over the past 18 months.

The move comes as part of the watchdog's investigation into dealings in the High Street giant ahead of a bid by entrepreneur Philip Green.

Brewin Dolphin became involved after Stuart Rose, chief executive of M&S, admitted buying 100,000 shares in the retailer on May 7 through Brewin's Birmingham office.

Rose's controversial purchase took place shortly after he received a phone call from Green ahead of a meeting five days later. Both men deny that a bid for M&S was discussed during that call.

One Brewin Dolphin insider said: 'It is absurd to ask for all clients' transactions in M&S. I cannot see the relevance. It involves more than 15,000 trades.'

Meanwhile, City investors are gambling that Green will fail in his attempt to buy M&S, according to an analysis of share holdings.

Figures from stock market settlement group Crest suggest that hundreds of millions of M&S shares have been shorted - a method of gambling on a share price fall.

M&S shares ended last week at 357 1/4p, well below Green's offer for the company of 'at least' 370p a share. The only way they will fall from this level is if Green's attempt to buy the business is driven off.